Former Federal Reserve Chairman Paul Volcker spoke at a press conference this morning saying "House prices in the U.S. are still declining. There are still more losses to come there. The economy, I believe, is in recession."
Without being completely pessimistic here, I think it is important to note that Paul Volcker does not think we will see much inflation. Gas prices are down, and the declining cost of consumer goods is apparent.....who am I kidding, there isn't a lot of good news to be found in this situation.
Truth is, even though we aren't going to see much inflation, when the recession is over, and we can see the light coming through the trees, we're going to have to dig deep into our pocket books even further to pay for the cost of the journey. After Recession, comes inflation.
The really shocking thing to me is the governments heavy involvement in the private sector. I don't think many of us have figured out if this is going to help us, or hurt us in the long run.
I think Real estate agents, dems and republicans alike can agree, the government wouldn't be our first pickas our guide in these dark economic times. It feels a little like having the big bad wolf who just enjoyed your grandmother for dinner, offer his condolences, and to pay for the burial service! On the other hand, most are relieved that we are not headed through this unmapped terrain alone.
While we may not know what this path holds for us, where it will take us, or when it will end for that matter, we must be very cautious in order to SURVIVE.
Remember the basic laws of nature.In the forest, when the food supply is low, and the weaker animals struggle to find food, they become the food! There are a lot of hungry people out there, and desperation makes people do desperate things.
As Roosevelt said, let's "Walk softly and carry a big stick", it's going to be a long hike.
Jamie Bullock
The Burish and Serena Team
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